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How has Congress' new legislation (early June 2020) affected the PPP Loan program?

How has Congress' new legislation (early June 2020) affected the PPP Loan program?

  • Businesses and Non-Profits should have a much easier time getting more of their PPP Loans Forgiven and converted to government grants that do not need to be paid back!
  • The "covered period" for spending funds has been extended from eight weeks to 24 weeks, now ending Dec. 31, 2020
  • The limits on loan forgiveness for business that were unable to rehire employees have been removed
  • The 25% cap to use PPP funds on nonpayroll expenses, such as rent, mortgage interest and utilities, has been increased to 40% of the total loan
  • The change in the law lowers the 75% requirement for payroll to 60% to get forgiveness
  • The loan terms for any unforgiven portion that needs to be repaid has been extended from 2 years to 5 years, at 1% interest
  • Small businesses now have more time to rehire employees

The net effect of this legislation is that more Businesses and Non-Profits can apply for a PPP Loan knowing that they might be able to get close to 100% of the PPP Loan amount Forgiven and turned into a government grant that does not need to be repaid!

Congress HAS voted to extend the deadline to apply for a PPP Loan until August 8, 2020.






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